Malawi and Tobacco Essay - 2018 Words

Malawi and Tobacco What strategies can Malawi use to overcome problems relating to a change in demand of its main export, tobacco. QUESTION- what strategies can Malawi use to overcome problems relating to a change in demand of its main export, tobacco? Malawi, a LEDC, located in Southern Africa, has a population of 10 million. Tobacco is its main export and this provides the majority of the countries export revenues. It has become dependant on exporting tobacco to firms based in MEDCs such as the United States. Demand for cigarettes has recently decreased because of health and ethical reasons. Cigarettes, has reached the end on its product lifecycle. However South East Asia remains a growing market, because of the†¦show more content†¦It has external debts of  £2.3bn and this is a huge factor in preventing internal development through investment. Although the country is rich in natural resources, such as, limestone, uranium, coal and bauxite, these potential high value commodity products are unexploited. Capital intensive investment would be required to use them and this is not available from within the country. The economy is predominately agricultural with 90% of the population located in rural areas. Presently agriculture, including tobacco-farming accounts for 37% of GDP and 85% of export revenues. Malawi not only depends on tobacco to survive The World Bank and IMF provides large sums on capital, creating debts that cannot be paid for. To change the countries economic position, in the long-term the government will have to solve short-term humanitarian problems, to make the country attractive to investors for example FDIs. Basic needs are not being met; Malawi has a HIV epidemic, a life expectancy of 36 years and an extremely poor standard of living (54% below the poverty line). Environmental issues include, deforestation; land degradation; water pollution from agricultural run off, sewage, industrial wastes and the situation of spawning grounds endanger fish population. The current food shortage will affect up to 70% of the population. Up to 3.2 million of these will need food aid to avoid starvation. FloodsShow MoreRelatedMalawi : A And Fascinating Land Rich1631 Words   |  7 PagesMaybelle de Herget Per 7 World Today Malawi Though Malawi is small, don’t be fooled by its size. It is a majestic and fascinating land rich in ancient history and myths and tales about spiritual beings and much more. Malawi is one of Africa s most beautiful countries with Lake Malawi, breathtaking landscapes, wildlife, and culture that goes as far back as B.C 8000. The name Malawi comes from the word Maravi of which this region used to part of. 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The city is more lucrative for real estate investment due to its growing economy and population growth trends. Finance, banking, retail trade, construction, transport, public administration, tourism, and tobacco manufacturing are the main economic activities in Lilongwe that draws